FutureAnoon
New Member
Hey folks,
I'm looking for some help with property ownership stuff...
My dad and I bought a home as his PPOR as joint tenants about five years ago. The idea was to do it for estate planning—so it wouldn't be part of his estate when he passed away, kind of like how if my wife passes away, our home becomes mine and not part of her estate that could get tangled up in a will dispute. (My siblings and dad have been estranged for 30 years, and he wanted them to get nothing when he died, so we got advice on ownership structures for some of his assets and a carefully set-up will.)
Anyway, the home's almost doubled in value since we bought it, and my dad recently passed away, so now the ownership is 1 00% in my name. We're weighing our options—keep it as an investment or sell it now.
If we keep it as an investment, I'm worried that when we do sell, CGT will be calculated on the original purchase price.
But if we sell it now—considering it's never been my PPOR and hasn't been generating income—would I pay CGT just on the growth of the half I own? We bought it with cash, by the way.
For the sake of argument...
Purchase price was $500k five years ago
Sale price now is $900k
Home is in QLD
Me and dad owned it as joint tenants, like the typical husband/wife setup.
Keeping proposed CGT changes aside,
1. If I sold now, would I have a CGT liability?
2. If I sold it in 10 years after renting it out for 10 years (owned for 15 years total), would CGT be based on the original purchase price or a formal valuation done now—i.e., when it became income-producing?
Thanks!
I'm looking for some help with property ownership stuff...
My dad and I bought a home as his PPOR as joint tenants about five years ago. The idea was to do it for estate planning—so it wouldn't be part of his estate when he passed away, kind of like how if my wife passes away, our home becomes mine and not part of her estate that could get tangled up in a will dispute. (My siblings and dad have been estranged for 30 years, and he wanted them to get nothing when he died, so we got advice on ownership structures for some of his assets and a carefully set-up will.)
Anyway, the home's almost doubled in value since we bought it, and my dad recently passed away, so now the ownership is 1 00% in my name. We're weighing our options—keep it as an investment or sell it now.
If we keep it as an investment, I'm worried that when we do sell, CGT will be calculated on the original purchase price.
But if we sell it now—considering it's never been my PPOR and hasn't been generating income—would I pay CGT just on the growth of the half I own? We bought it with cash, by the way.
For the sake of argument...
Purchase price was $500k five years ago
Sale price now is $900k
Home is in QLD
Me and dad owned it as joint tenants, like the typical husband/wife setup.
Keeping proposed CGT changes aside,
1. If I sold now, would I have a CGT liability?
2. If I sold it in 10 years after renting it out for 10 years (owned for 15 years total), would CGT be based on the original purchase price or a formal valuation done now—i.e., when it became income-producing?
Thanks!